China Manufacturing PMI shows slight expansion in January
1 February, 2012, 12:38. Posted by ZarathustraTags: Economy
China’s official manufacturing PMI rose from 50.3 in December to 50.5, above market consensus of 49.6, which shows slight expansion in industrial activity for January.
New orders rebounded from 49.8 to an expansionary 50.4, while finished goods inventory dipped from 50.6 to 48, which gives a positive reading for the the New Order minus Inventory. Input price, however, was back up from 47.1 to 50. Meanwhile, new export orders fell again from 48.6 to 46.9, possibly indicating a weak external demand, and imports also fell from 49.1 to 46.9.
On another note, the HSBC China manufacturing PMI gives a slight contractionary reading of 48.8, slightly up from 48.7 in December.
Source: China Federation of Logistics & Purchasing
Source: China Federation of Logistics & Purchasing, National Bureau of Statistics
While the readings for most China’s macro data in the beginning two months are somewhat distorted due to the Chinese New Year, it is still worth pointing out that the current January PMI appears to be the weakest among all Januarys on record except for the year 2009, when the financial crisis hit.
Source: China Federation of Logistics & Purchasing
Source: China Federation of Logistics & Purchasing
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.
